Reality Checks, Maybe? | Tax Policy Center
An increase to corporate tax rates? TaxNotes reports (paywall) on thoughts from House Ways & Means Committee Chairman Jason Smith (R-MO) on how Congress might tackle the looming expirations of individual income and estate tax provisions of the 2017 Tax Cuts and Jobs Act (TCJA) in 2025. Smith indicated that some in his caucus may join Democrats in an effort to raise the corporate tax rate as a revenue raiser. He noted that finding enough offsets to cover the cost of fully extending the TCJA might be difficult.
Extending the TCJA would indeed be costly. The Congressional Budget Office (CBO) reports the cost of extending the TCJA has expanded to $4.6 trillion, $3.8 trillion of which would be required to extend just personal income tax cuts. The original ten-year cost estimate of the TCJA was $1.9 trillion. CBO Director Phillip Swagel told Bloomberg the US continues to face a “daunting” fiscal outlook.
Canadian business groups call on Prime Minister Trudeau to ditch capital gains tax hike. The Canadian government plans to raise the tax rate on capital gains. Individuals with gains over C$250,000 (about $182,000) will be taxed at a new, higher rate that goes into effect June 25. Officials estimate changes would affect 12.6 percent of businesses and 0.13 percent of individuals. Business groups disagree, saying one in five Canadians would be affected over the next ten years.
On Capitol Hill… The House Ways & Means Committee is holding a field hearing today in Scottsdale, Arizona, on empowering Native American and rural communities with regard to adoption, foster care, and child support issues. Next Thursday, May 16, the Senate Finance Committee will hold a hearing on rural health care.
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